US electric vehicle (EV) manufacturer Tesla Inc has chosen Beijing as the location for its new Chinese vehicle design centre, according to local reports citing a Beijing government document.
The carmaker announced early last year that it planned to establish a “full-function” design studio in the country, either in Shanghai or Beijing, to develop vehicles closely tailored to the Chinese market.
China’s importance in NEV market
China has become Tesla’s most important EV production base globally, with output at the company’s Shanghai plant reported having exceeded 484,000 vehicles last year – representing more than half of the company’s 936,000 global deliveries.
Around 320,000 Tesla’s are estimated to have been sold in China last year, while exports exceeded 160,000 units – mainly to markets in Asia and Europe.
With a solid position in the world’s largest auto market, the Chinese market has begun to transform into technological innovation, and many foreign auto companies have also started R&D work in China.
Beijing not only is one of the largest auto markets in China but has also acquired a large talent pool. Designing R&D centres in Beijing would be conducive to finding relevant talents.
Beijing’s focus to promote advanced industry
This originated from Beijing’s idea to ‘promote advanced industry’s production ability. New energy and the intelligent car as one of its focus points are being highly supported.
Among the programs revealed, NIO is the only new car manufacturer that has settled in Beijing.
Li Auto’s Beijing plant, formerly known as Beijing Hyundai’s manufacturing plant, is expected to be completed and put into production by the end of 2023. After the transformation, the Beijing plant’s estimated production capacity will be 100,000 vehicles.
Although they have different specific reasons, more and more car companies are launching specific projects in Beijing to fill the gaps in Beijing’s new energy vehicle industry.
The competition for resources and talents in the Beijing area will intensify. In the future, more car companies may realise Beijing, even the whole north’s advantages in terms of new energy R&D, and production, and actively invest in the north.
